Unit 5

Concept to
Commissioning
AR 8017 CONSTRUCTION AND PROJECT MANAGEMENT
B. ARCH SEM X
Overview
 Project Feasibility
 Real Estate & Regulatory Strategies
 EPC
Design Management
 Facility Programming and Planning
Testing and Commissioning
Project Feasibility: Introduction
Project feasibility refers to the process of assessing a project's potential risks and benefits to determine if
it is viable and worth pursuing.
It involves analyzing the project's scope, goals, budget, and timeline to ensure that it is achievable and
profitable.
Project Feasibility: Importance
oProject feasibility is crucial to the success of any construction project.
oWithout it, the project may fail to meet its goals, exceed its budget, or miss its deadline.
oProject feasibility ensures that the project is viable, achievable, and profitable, which reduces the risk of
failure and maximizes the chances of success.
Project Feasibility: Key Elements
oProject feasibility involves analyzing several key elements, including the project scope, goals, budget,
timeline, resources, risks, and benefits.
oEach of these elements is crucial to the project's success and must be carefully considered during the
feasibility analysis.
Project Feasibility: Analysis
oThere are several methods for conducting a feasibility analysis, including market analysis, financial
analysis, technical analysis, and risk analysis.
oEach of these methods provides a different perspective on the project's viability and helps identify
potential risks and benefits.
Project Feasibility: Process
oThe feasibility analysis process involves several steps, including project initiation, data collection,
analysis, and reporting.
oDuring each step, the project team gathers and analyzes data to assess the project's viability and identify
potential risks and benefits.
Project Feasibility: Benifits
oProject feasibility provides several benefits to construction managers, including reducing the risk of
failure, ensuring the project's viability and profitability, maximizing resource utilization, and minimizing
costs and delays.
Project Feasibility: Challenges
oProject feasibility also presents several challenges, including uncertainty, complexity, and changing
project requirements.
oThese challenges require construction managers to be flexible and adaptable to ensure that the project
remains viable and on track.
Project Feasibility: Challenges
oProject feasibility also presents several challenges, including uncertainty, complexity, and changing
project requirements.
oThese challenges require construction managers to be flexible and adaptable to ensure that the project
remains viable and on track.
Real Estate and regulatory Strategies
oReal estate is a crucial sector in India's economy, contributing significantly to its GDP and employment.
oHowever, the sector has historically been marred by issues such as lack of transparency, regulatory
complexity, and a high degree of speculation.
o In recent years, the Indian government has introduced several regulatory measures to address these
issues and promote transparency and accountability in the real estate sector.
RERA: Introduction
oThe Real Estate Regulation and Development Act (RERA) is a key regulatory measure introduced by the
Indian government to promote transparency and accountability in the real estate sector.
oRERA aims to protect the interests of homebuyers and ensure timely completion of projects by
mandating that developers register their projects and provide detailed information about them on a
public database.
o The Act establishes a Real Estate Regulatory Authority (RERA) in each state for regulation of the real
estate sector and also acts as an adjudicating body for speedy dispute resolution.
oBill was introduced in 2013, was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on
15 March 2016. The Act came into force on 1 May 2016 with 61 of 92 sections notified.
RERA: Definition
oAn Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate
sector and to ensure sale of plot, apartment of building, as the case may be, or sale of real estate project,
in an efficient and transparent manner and to protect the interest of consumers in the real estate sector
and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the
Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory
Authority and the adjudicating officer and for matters connected therewith or incidental thereto.
RERA: Key Provisions
Registration of Real Estate Projects: Under RERA, developers are required to register all their real estate projects with the RERA
authority before they can advertise, market, or sell the projects. The registration process involves providing detailed information
about the project, such as the land title, layout plan, schedule of completion, etc.
RERA Website: RERA has set up a website where all registered projects and their details are available to the public. This ensures
transparency and helps homebuyers make informed decisions about their purchases.
Advance Payments: Developers are prohibited from taking more than 10% of the cost of the apartment or plot as advance payment
from homebuyers without signing a written agreement. This is to prevent developers from taking excessive amounts of money from
buyers and not delivering on their promises.
Carpet Area: RERA mandates that developers disclose the carpet area of the apartment or plot, instead of the super built-up area.
This helps homebuyers understand the actual usable area of the property they are buying.
Escrow Account: RERA requires developers to deposit 70% of the funds collected from homebuyers in a separate escrow account,
which can only be used for construction and land costs. This ensures that the money collected from homebuyers is not diverted for
other purposes and helps ensure timely completion of projects.
Timely Completion: RERA mandates that developers complete their projects within the time frame specified in the registration,
failing which they are liable to pay penalties and compensation to homebuyers.
Grievance Redressal: RERA has established a dispute resolution mechanism for addressing grievances of homebuyers and
developers. Each state has a RERA authority that is responsible for implementing and enforcing the provisions of RERA and resolving
disputes between developers and homebuyers.
Impact of GST on Real Estate
oThe Goods and Services Tax (GST) is another regulatory measure introduced by the Indian government
that has a significant impact on the real estate sector.
oGST replaced several indirect taxes, including Value Added Tax (VAT) and Service Tax, and has led to a
more streamlined and uniform tax structure for the real estate sector.
oThe impact of GST on the real estate sector has been mixed. While it has led to a more streamlined tax
structure and reduced tax evasion, it has also led to a marginal increase in the cost of real estate due to
the higher tax rate of 18%.
Benami Transactions Prohibition Act
oThe Benami Transactions (Prohibition) Act is another key regulatory measure introduced by the Indian
government to curb black money and corruption in the real estate sector.
oThe act aims to prevent the practice of holding property under false names to evade taxes or launder
money.
oThe impact of the Benami Transactions (Prohibition) Act on the real estate sector has been significant.
o It has led to increased transparency and accountability in property transactions, reduced the incidence
of black money and corruption, and helped boost consumer confidence in the sector
Benami Transactions Prohibition Act: Key
Features
Prohibition of Benami Transactions: The act prohibits all benami transactions and defines them as transactions where a
property is held by one person but is paid for by another person.
Confiscation of Benami Property: The act allows for the confiscation of benami properties, which are properties held by one
person but paid for by another person.
Penalties: The act provides for strict penalties for those who engage in benami transactions. These penalties can include
imprisonment for a period of up to 7 years and a fine of up to 25% of the fair market value of the benami property.
Benami Property Prohibition Officer: The act provides for the appointment of a Benami Property Prohibition Officer (BPPO),
who is responsible for initiating and conducting investigations into benami transactions.
Powers of Authorities: The act provides various powers to authorities for the effective implementation of the provisions of
the act. These powers include the power to enter and search premises, seize benami property, and conduct inquiries and
investigations.
Prohibition of Re-Transfer: The act also prohibits the re-transfer of benami property back to the original owner, and
provides for penalties for those who violate this provision.
Provision for Informers: The act provides for a reward to informers who provide information leading to the discovery and
confiscation of benami properties.
EPC Contracts: Introduction
EPC stands for Engineering, Procurement, and Construction.
It is a popular contracting model used in the construction industry, particularly in large-scale projects,
such as power plants, chemical plants, and other infrastructure projects.
In an EPC contract, the contractor is responsible for the entire project, from the design phase to the
construction phase and final delivery of the project.
EPC Contracts: Benefits
Single Point of Responsibility: In an EPC contract, the contractor is responsible for the entire project,
which means there is a single point of responsibility. This reduces the risk of disputes and ensures that
the project is delivered on time and within budget.
Reduced Risk for the Owner: EPC contracts shift the risk from the owner to the contractor, as the
contractor is responsible for any cost overruns, delays, and quality issues.
Faster Project Delivery: The EPC contracting model allows for faster project delivery as the contractor is
responsible for the entire project, including the design and construction phases.
Cost Savings: EPC contracts can lead to cost savings as the contractor is responsible for sourcing and
purchasing materials, which can lead to volume discounts and cost savings.
EPC Contracts: Key Components
Engineering: This includes the design and engineering of the project, including the preparation of
drawings, specifications, and other engineering documents.
Procurement: This includes the procurement of materials, equipment, and services required for the
project.
Construction: This includes the construction of the project, including site preparation, foundation works,
erection, installation, and commissioning.
Performance Guarantees: This includes guarantees and warranties related to the performance of the
project, such as quality guarantees, uptime guarantees, and environmental guarantees.
Project Management: This includes the project management activities required to ensure that the
project is delivered on time and within budget.
Change Management: This includes the process for managing changes to the project scope, schedule,
and budge
EPC Contracts: Types
Lump Sum Turnkey (LSTK): In an LSTK contract, the contractor agrees to deliver the project for a fixed
price and within a fixed timeframe. The contractor assumes all the risks associated with the project and is
responsible for any cost overruns or delays.
Cost Plus: In a cost-plus contract, the contractor is reimbursed for all project costs, plus a predetermined
profit margin. The owner assumes more risk in this type of contract, as the final project cost is uncertain
until the end of the project.
Design Management
Managing the design process, ensuring that the design meets the requirements of the project,
and ensuring that the design is completed within the project's budget and schedule.
Key Activities:
1. Planning and scoping
2. Design developments
3. Design coordination
4. Review and approval
5. Design Implementation
Design Management: Challenges
1. Coordination and Integration
2. Cost Management
3. Time Management
4. Risk Management
5. Quality Management
Facility Programming and Planning
Facility programming and planning is the process of defining the functional requirements of a
building or space and developing a plan to meet those requirements. It involves identifying the
needs of the users, developing design objectives, and determining the physical and operational
characteristics of the facility.
Facility Programming
Facility programming is the process of gathering and analyzing data to determine the functional
requirements of a building or space. It involves identifying the needs of the users, developing
design objectives, and determining the physical and operational characteristics of the facility.
Process:
Conducting a needs assessment
Establishing goals and objectives
Identifying functional requirements
Developing design concepts
Testing and refining design concepts
Facility Planning
Definition: Facility planning is the process of developing a plan to meet the functional requirements
of a building or space. It involves determining the physical and operational characteristics of the
facility, selecting design options, and preparing detailed plans and specifications.

Process:
Developing a space program
Determining site requirements
Selecting design options
Preparing detailed plans and specifications
Obtaining approvals and permits
Facility Programming and Planning:
Benefits
Helps to identify and prioritize the needs and requirements of the facility.
Provides a clear understanding of the scope and goals of the project.
Helps to minimize project delays and cost overruns.
Provides a roadmap for the design and construction of the facility.
Testing and Commissioning
oThe testing phase involves the assessment of individual components or systems to ensure they
meet the required standards and specifications.
oTests are conducted to evaluate the functionality, reliability, and safety of individual
components or systems
oCommissioning involves the testing and verification of the building's systems and equipment
as a whole to ensure that they function as intended and meet the required standards and
specifications.
oDuring the commissioning phase, various tests are conducted to evaluate the functionality,
reliability, and safety of the building's systems and equipment.
Testing and Commissioning
Planning and design: requirements are identified and incorporated into the design process.
Installation and construction: systems and equipment are installed and construction activities
are carried out.
Initial testing: individual components or systems are tested to ensure they meet the required
standards and specifications.
Integrated testing: building's systems and equipment are tested together to ensure they
function as intended and meet the required standards and specifications.
Final commissioning: building's systems and equipment are verified and tested to ensure they
meet the required standards and specifications.